The Death of the Agency of Record Is Near
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The “agency of record” concept is just about dead, and so are the retainers that funded them.
Advertisers have expanded their network of agencies, creating a diverse “family of agencies” to provide specialized services across the fragmented media landscape. Agency funding has been converted to project-based funding. Workloads are uncertain for individual agencies, and as a consequence, so is expected income. Scope-of-work planning is an ad hoc exercise. Uncertainty is on the rise. What does this mean for individual agencies, which have to forecast income and profits for their holding-company owners? What does it mean for advertisers, which now have to integrate the members of their family of agencies? Here are a few observations:
Agencies will cut costs and capabilities
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